California, August 25, 2025
News Summary
California is facing a gasoline supply crisis as Phillips 66’s Wilmington facility and Valero’s Benicia plant prepare to close, risking 18% of the state’s refining capacity. This situation threatens to increase gas prices by 15 to 30 cents per gallon, impacting both businesses and working families. The California Energy Commission is addressing concerns about fuel availability, while new legislation is being proposed to stabilize the market amidst growing frustration from environmental advocates regarding potential regulatory changes.
California Faces Gasoline Supply Crisis as Two Major Refineries Prepare to Close
California is bracing for a significant gasoline supply crisis as two major refineries, Phillips 66’s Wilmington facility and Valero’s Benicia plant, prepare to close operations. These closures pose a risk to 18% of the state’s refining capacity and threaten to drive gas prices up by 15 to 30 cents per gallon in the short term, according to industry experts.
The upcoming refinery shutdowns have been characterized as an affordability crisis, presenting challenges for both businesses and working families across the state. As California grapples with existing economic pressures, these closures could further exacerbate the cost of living for residents who rely heavily on affordable fuel.
In response to the looming crisis, the California Energy Commission (CEC) has begun to address concerns regarding fuel availability and affordability. In recent developments, Assemblymember Cottie Petrie-Norris convened an oversight hearing focused on the implications of the refinery closures, emphasizing the urgent need for transparency and decisive action.
Economic Impact of Refinery Closures
California’s economy, particularly in regions like Orange County, relies significantly on affordable fuel to sustain various sectors, including advanced manufacturing, life sciences, technology, and tourism. However, with gas prices in California already averaging $1.47 more than the national average as of 2025, the potential for further price increases raises concerns about economic stability.
Analysts warn that with the closures of these refineries, the state may need to increase reliance on imported fuel. However, such imports may not necessarily meet the same environmental standards as fuel produced locally, raising further concerns among environmental advocates.
Some lawmakers have expressed frustration towards state regulators who overlook the consumer impact of regulatory decisions affecting the oil and gas industry. Amid these challenges, Governor Gavin Newsom has proposed new legislation aimed at stabilizing the petroleum market. This includes measures to enhance state oil production and fast-track drilling permits in certain areas.
Legislative Actions and Environmental Concerns
While the intended legislation aims to address concerns over the increasing need for oil imports due to declining in-state production, environmental groups have criticized the bill. They argue it is excessively favorable towards the oil industry and jeopardizes environmental protections that have been in place.
Key officials from state regulatory agencies have been summoned before the Legislature to discuss the potential repercussions of refinery closures on fuel prices and supply. This marks a notable shift in California’s relationship with the petroleum industry, indicating a growing need for cooperation to protect the fuel supply amid ongoing regulatory pressures.
Future Implications
As California faces a critical juncture regarding its gasoline supply, there are warnings that without swift action, the state’s residents could experience significant price volatility. This situation underscores the importance of balancing environmental concerns with the need to maintain an affordable and stable fuel market for consumers and businesses alike.
Key Features of the Gasoline Supply Crisis in California
| Aspect | Details |
|---|---|
| Refinery Closures | Phillips 66’s Wilmington facility and Valero’s Benicia plant. |
| Impact on Refining Capacity | 18% of California’s refining capacity at risk. |
| Proposed Price Increase | 15 to 30 cents per gallon expected. |
| Legislation Response | Governor Newsom’s proposed bill to stabilize the petroleum market. |
| Environmental Considerations | Increased reliance on imported fuel with differing environmental standards. |
FAQs
What are the two refineries closing in California?
The two refineries facing closure are Phillips 66’s Wilmington facility and Valero’s Benicia plant.
What percentage of California’s refining capacity will be affected?
These closures put 18% of the state’s refining capacity at risk.
How much are gas prices expected to rise?
Experts predict a rise of 15 to 30 cents per gallon in the short term.
What actions are state officials taking in response to the closures?
The California Energy Commission is assessing the impact, and Governor Newsom has proposed legislation to stabilize the petroleum market and enhance oil production.
What concerns do environmental groups have regarding the proposed legislation?
Environmental groups argue that the proposed legislation is overly favorable to the oil industry and could undermine environmental protections.
Deeper Dive: News & Info About This Topic
- Energy at Haas: California’s Refinery Closure Drama
- Wikipedia: Gasoline
- San Diego Union Tribune: A Do-Over for Newsom
- Google Search: California refinery closures
- KCRA: California Lawmakers and Regulators Clash
- Encyclopedia Britannica: Oil Refinery
- KMPH: Why Are Oil Refineries Leaving California?
- Kron4: Gas Prices Could Soar
- Reuters: California Steps to Find Buyer for Valero Refinery
- Forbes: Job Market Challenges from Refinery Closures
- Google News: California refinery closures
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
